Nation’s Economy - Greatly Affecting Small Businesses

The largest recession that U.S. residents and companies have seen in the past 50 years continues to indirectly affect many small businesses.  The housing market and stock market have been some of the major focuses, while the banking and loan business trails a close second.  Many major U.S. owned businesses, that employ millions of Americans, are also being affected by the recent collapse in these major industries.

At the epicenter of the housing market and property value collapse is Phoenix, Arizona - one of the hardest hit locations in the U.S..  Financial assistance applicants are quickly finding out that their home is valued at 20 to 50 percent less than what it was just 2 years prior.  Loss of equity has caused select homeowners to just walk away from their homes, in fact, bank foreclosures are at their highest ever. 

Just when Americans think they have not been affected by this national recession, some find out they are mistaking.  Looking to keep their finances out of the stock market, many homeowners desire to keep their money in their homes.  This home improvement loan generally comes from a local bank, credit union, or credit agency.  Swimming pool, landscape, and home improvement companies have not had the fortune of getting it’s prospecting buyers approved for these financing programs.

Since up to seventy% of swimming pool customers require financial assistance or loans, Phoenix swimming pool builders have been one of the hardest hit businesses.  If financial assistance is not obtained, swimming pool and construction companies end up losing the job, or selling a job that is much lower than anticipated.  Arizona pool companies have struggled tremendously with the downswing in the economy and lack of financing - sometimes even closing their doors, down-sizing, or diversifying into other industries.  Many pool and spa contractors have started doing landscaping and swimming pool remodels for extra income.  General contracting companies have entirely gone into other fields, such as sales, marketing, or consulting.  Many Arizona Landscape Contractors are expanding into building of hardscapes, such as outdoor kitchens Phoenix, barbecues, fireplaces, and paver patios.

Unique Landscapes and Custom Pools, a Phoenix pool and landscape company, figured out how to diversify it’s products and services many years ago.  Unique is able to offer its customers many different options and services in the home improvement industry because of it’s diversity as a Phoenix pool builder, general contractor, and landscaping contractor.  “By diversifying a couple of years prior into swimming pools, landscaping and general contracting, our construction company has been able to keep our heads above water during these tough times.  However, the major challenges have been the simple fact that these loan programs are simply not available to the average customers.”

“It’s tough to think about all the money that was given to banking industry just a year ago for these types of loans, and now it’s challenging for our clients, who want to spend money, to get this aid” remarks owner Chris Griffin, of Unique Landscapes and Custom Pools in Mesa, AZ.  Maybe it’s time for the government to look a little further into some of the struggles of the smaller companies that are greatly affected by this struggling economy.  “I don’t see the light at the end of the tunnel yet, but I can tell it’s there….” claims Griffin, “Pool financing Phoenix is getting a little better”.

Few areas of credit are as complicated today as that of student loans. There are many types, with lots of terms, complicated conditions, and fine print. Fully understanding the options available is certainly an excellent choice in the long-run when having to fund an eduction.  It’s very important that students understand financial options so that they can use this information in the rest of their lives.

One of the most common options is a Stafford loan. Hundreds of thousands of students have used these as a means of partially financing their education and they do have some positive aspects.

The Stafford loan has no pre-payment penalty - you can pay off any remaining balance any time. The great thing is that no credit check is preformed meaning that just about anyone can qualify. There are no payments required while the student is taking courses, provided they maintain at least a half-time status. And, after leaving school there’s a six-month grace period during which no payments are required.

But there are limits on the amount that can be borrowed in one year. Also, though Stafford rates often look attractive relative to ordinary loans, they contain additional charges that can make the cost of borrowing higher. Up to 3% in fees (including a 2% Federal ‘origination fee’ and a 1% Federal default fee) can be applied.

Re-paying a student loan can seem a daunting task however there is the option to pay over a period of 10 years which makes things much easier. You might find this an attractive option because the monthy repayments ar low (in the following example you will see that it’s $116 per month). But the amount of interest accumulated on a 7% loan of $10,000 (and most students borrow more) over 10 years is: $3,933. This means that the interest paid is 39% of the original amount. Definitely, not cheap money.

Though it may involve beginning repayment immediately, many parents attempting to help finance their son or daughter’s education will find it worthwhile to investigate other alternatives. Even students should make an effort to look for other routes, including a combination of grants, scholarships, and conventional loans repaid with money earned from part-time work.

Don’t forget saving options because this is something that everyone should have no matter what your age. The risk with all such plans is that inflation, financial crises, and other unpredictable elements can cause that investment to be worth very little by the time it is needed.

Have a look at all the options available to you such as inflation-adjusted hedge funds and ax-free municipal bonds which can help to off-set any of those effects.  Don’t get too heavily into credit card debt or payday loans.